Credit history compilation procedure: Bank of Russia explains
Preparations are underway in the credit information market for amendments, to become effective from 2022, to the statutory procedure for compiling credit history. To support this process, the Bank of Russia has prepared a commentary on the regulation that governs procedures whereby lenders provide information to credit history bureaus (CHBs).
The commentary answers frequently asked questions of market participants in connection with the transition to the new format of information transmission to CHBs. It also offers examples of how individual credit scores are calculated. The guidance will be updated as new questions come in.
This will help credit history sources and CHBs minimise possible errors, ensure consistency in the rollout, improve the quality of credit history data and minimise differences in credit histories generated by several CHBs in relation to the same obligation.
The regulator’s guidance will contribute to the successful and timely implementation of legislative changes, helping increase the predictive power of credit history, conduct more accurate borrower assessments and efficient machine processing of information, including based on big data.